Government Loan Schemes That Can Empower You in 2025
Are you planning to start a business, renovate your home, or need funds for education or farming? The Indian government offers a range of loan schemes with low interest and no collateral, designed to help individuals, small business owners, and farmers achieve financial freedom.
Here’s a detailed guide to the top government-subsidized loan schemes in India for 2025, including eligibility, interest rates, and how to apply.
1. PM Mudra Yojana (Pradhan Mantri MUDRA Loan)
- Loan Amount: ₹50,000 to ₹10 Lakhs
- Interest Rate: 7.30% – 12%
- Eligibility: Non-corporate small businesses, self-employed, MSMEs
- Collateral: Not required
- Tenure: Up to 5 years
- Types: Shishu (up to ₹50K), Kishore (₹50K–₹5L), Tarun (₹5L–₹10L)
Read more About PM Mudra Yojana
2. Stand-Up India Scheme
- Target Group: SC/ST or women entrepreneurs
- Loan Amount: ₹10 Lakhs – ₹1 Crore
- Purpose: For setting up Greenfield enterprises in manufacturing, services, or trading
- Interest Rate: Bank-dependent (usually around 7.5% – 9%)
- Margin Money: Minimum 10%
Read more about Stand-Up India Scheme
3. Kisan Credit Card (KCC)
- Loan Amount: Up to ₹3 Lakhs
- Interest Rate: 4% (after 2% interest subvention)
- Eligibility: Farmers involved in crop production and allied activities
- Collateral: Not required for up to ₹1.6L
Read more about Kisan Credit Card
4. PMAY – Home Loan Subsidy under CLSS
- Full Name: Pradhan Mantri Awas Yojana (Credit Linked Subsidy Scheme)
- Interest Subsidy: Up to 6.5% on housing loan interest
- Eligibility: EWS, LIG, and MIG groups
- Max Loan Tenure: 20 years
- Purpose: First-time home purchase or construction
Know More about PMAY Home Loan Subsidy
5. Central Sector Interest Subsidy Scheme (Education Loans)
- Eligibility: Annual family income ≤ ₹4.5 Lakh
- Loan Coverage: Up to ₹7.5 Lakh
- Subsidy: Full interest during the moratorium (course duration + 1 year)
- Banks Covered: Scheduled commercial banks
Know more about Education Loans
Eligibility Criteria (General Guidelines)
- Valid Aadhaar & PAN card
- Purpose-specific documentation (e.g., business proposal for Stand-Up India)
- No previous loan defaults (especially for PMAY and Mudra)
- Caste or gender-based eligibility for specific schemes like Stand-Up India
Where to Apply
- Official scheme websites (e.g., mudra.org.in, standupmitra.in)
- Partnered banks (SBI, HDFC, ICICI, Bank of Baroda, etc.)
- Udyam Registration for MSME benefits
- Jan Seva Kendra or CSCs
FAQs – Government Loan Schemes India 2025
Q. Can I apply for a government loan online?
A. Yes, most schemes are accessible via government portals or through bank websites.
Q. Is a CIBIL score required for PM Mudra Yojana?
A. No strict score required, but repayment ability is evaluated.
Q. What’s the difference between Mudra and Stand-Up India?
A. Mudra is for micro-businesses, while Stand-Up India is for women and SC/ST-led larger ventures.
